Oil and Gas: UK Continental Shelf

Debate between Lord St John of Bletso and Lord Bourne of Aberystwyth

Tuesday 9th February 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right that the fall in oil prices is an international problem. He will be aware that there was fiscal reform in the 2015 Budget, with a £1.3 billion injection of extra help over five years through tax cuts. As I have said, the Chancellor will look at representations that have been made to him.

[Lord St John of Bletso (CB)]

My Lords, are the Government considering a direct subsidy of development capex for exploration and production companies on the UK continental shelf, such as is given to similar companies in Norway?

[Lord Bourne of Aberystwyth]

My Lords, the package that the Prime Minister announced on 28 January includes £20 million of new investment in seismic exploration. This will be of assistance, together with the City Deal package for Aberdeen which includes a new innovation energy centre. I hope that the noble Lord will welcome it.